Citation

Abstract / Synopsis

This case study was carried out to observe RSSB's Diversification Policy. The
purpose of the study was to secure an understanding of what RSSB's diversification
policy was about, how it was implemented, what problems were encountered during the
implementation and what strategies were used to overcome the problems. During the
preliminary stage of the study, an extensive search for a better grasp of the process of
diversification was done by analyzing the steps and considerations taken by other
companies that have undergone diversification. In this study, it was found that
successful diversification could be achieved if the particular company carried out extensive analysis of the environment, observed the take off timing and considered six
questions identifying their strategic assets. 12 senior managers from RSSB were chosen
as respondents because they were involved directly in the formation and
implementation of the policy. In-depth interviews, semi-structured questionnaire and
historical data analysis were carried out to obtain a first hand view of the respondents
perception regarding the diversification policy. All interviews were tape-recorded and
subsequently transcribed to facilitate data analysis. Semi-structured questionnaires were
distributed to the managers who were inaccessible because of distance. The study found
that the respondents understood and implemented the policy according to what were
expected. In addition, the formation and the implementation of the policy were
congruent with the analysis suggested by literature review. As expected, the study
revealed that prior to the formation of the policy, RSSB had done an in-depth analysis
of the environment and an objective SWOT analysis of the company. It also did a stockcheck
of its strategic assets. Although the respondents faced many problems in the
implementation of the diversification policy, they showed an optimistic attitude in
finding ways to overcome these problems. A series of recommendation to improve on
the policy was made based on the analysis of the problems indicated and based on
suggestions from respondents. This study is a reaffirmation that RSSB has taken all the
right steps and action in the formation and implementation of the diversification policy.